FASHION house Burberry posted higher first-half profits today but voiced fears that wholesale customers were not ordering as many of its clothes as before.

Burberry forecast a "moderate underlying decline" in wholesale sales between October and March on the basis of demand for its 2006 spring and summer collections so far.

Weakness in the UK and Spain was set to persist over the key Christmas period, but the group was encouraged by chillier weather sweeping across key markets after a warm autumn dulled demand for its iconic scarves and other items.

Rose Marie Bravo, who will step down as chief executive next summer, said: "With cold weather arriving and the holidays approaching, we enter our most important time of year with cautious optimism."

Pre-tax profits in the first half rose to £81.1 million during the six months to the end of September from £79.4 million before the costs of its Project Atlas overhaul were taken into account.